Enterprise Ireland: Why sustainability must be a priority for Irish firms

The long term that was referenced in that report is now well and truly here, and in this year’s report they warned that four of the top five risks relate to climate. There is hope, however, as a report issued by the IPCC earlier this year, while somewhat stark, was clear that we can mitigate the worst effects of climate change if we can maintain warming at 1.5 degrees.

Sustainability is a core pillar of Enterprise Ireland’s strategy and we firmly believe it is crucial for all of our clients. We all have our part to play in society, and for Irish owned businesses that means developing a sustainability strategy, along with a detailed implementation plan and the urgency to carry out this work.

This strategy must cover the whole business and consider efficient use of resources, from reducing food waste and developing green infrastructure, to process improvements and partner management, through to energy supply diversification.

Mitigating climate change is vital but it’s also worth bearing in mind there are multiple market drivers demanding that companies become more sustainable.

One such driver is carbon costs, which have rapidly increased in recent years, and the EU is phasing out free allocations under its emission trading system. Enterprise Ireland client companies are currently spending in the region of €130m a year on carbon credits, but this could soon increase to over €400m a year if we don’t reduce our carbon footprint.

Green procurement and green supply chains are also an increasingly important factor for Irish businesses that are doing business internationally. Increasingly, companies are requiring their suppliers to demonstrate robust sustainability plans showing the steps that they are taking to reduce their environmental impact.

Having a credible sustainability strategy is now crucial to recruitment and retention, particularly when it comes to employees under 30. Likewise, consumers have expectations and clearly favour products and services with sustainability at their core. It’s clear that having a strong sustainability strategy confers real competitive advantage.

While carbon reduction is vital, sustainability is broader than that. It also includes supporting biodiversity, promoting water quality and making the most of the extraordinary opportunities offered by the circular economy.

Change is possible and Enterprise Ireland is on that journey with Irish business. At the recent Business Leaders’ Conference hosted at the Enterprise Ireland Summit, the theme for the day was ‘Scaling, Sustainability and Driving Innovation’. And the afternoon session, attended by hundreds of Irish business leaders, focused solely on sustainability and the importance of sustainable growth.

Enterprise Ireland is ready to support companies in developing innovative responses to meet both the demands and opportunities offered by sustainable business. We are here to help at every stage of your sustainability journey.

Alexa Toomey, Head of Sustainability, Renewable Energy and AgTech, Enterprise Ireland